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New mutual funds provide broader access to innovative ETFs
Sept. 9, 2013 /CNW/ - PowerShares Canada celebrated the recent launch of two new mutual funds by ringing the opening bell at the Toronto Stock Exchange this morning.
PowerShares Canadian Low Volatility Index Class and PowerShares U.S. Low Volatility Index Fund ("the Funds") provide investors with exposure to portfolios of equities that are less volatile than the broad indices.
"A low-volatility portfolio of equities may offer a better way for long-term investors to own equities, regardless of their risk tolerance," said
Michael Cooke, Head of Distribution, PowerShares Canada. "This investment approach has historically resulted in higher relative performance compared to cap-weighted indices over the long term."
Conventional market wisdom dictates that investors seeking higher returns must accept more risk. But academic research has shown that low volatility investing can provide superior risk-adjusted returns over the long term.
Historically, lower volatility stocks have outperformed broad indices in declining markets, while also participating in stock market rallies. Low volatility strategies have also offered higher dividend yields than broad equity market benchmarks.
"Equity investors may want to consider a low volatility as a long-term investment strategy, rather than simply a 'trade' during risk-off periods in equity markets," said Cooke.
PowerShares Canada revolutionized the investment industry in 2009 by providing investors access to a powerful lineup of exchange-traded funds (ETFs) through an innovative suite of mutual funds. PowerShares Funds combine many of the key features of ETFs with those of mutual funds offered in
PowerShares Canadian Low Volatility Index Class provides investors with exposure to the S&P/TSX Composite Low Volatility Index by investing primarily in securities of PowerShares S&P/TSX Composite Low Volatility Index ETF (TSX: TLV). The Fund is structured as a class within Invesco Corporate Class Inc.